3 biggest airlines add $20 to fares

09.05.2008 10:01 Shopping - Source: toledoblade.com

The increases by American Airlines, United Airlines, and Delta Air Lines affect the carriers' fuel surcharges, which now total $130 round trip on many flights. That means passengers on some cheap flights could be paying more in fees and taxes than for the airfare itself.

Delta initiated the increase, which applies to most domestic routes and is the carrier's second in just over a week. The previous increase was quickly matched by competitors.

"This is obviously a result of the current market, and fares have to reflect the cost of doing business," spokesman Betsy Talton said.

Representatives for American and United said the carriers matched the increase on most routes yesterday.

Airlines have been racing to raise airfares, tack on surcharges, and charge for amenities such as extra bags and legroom as they struggle to cope with soaring energy prices. Many airlines now count fuel as their biggest cost.

The price of jet fuel, like gasoline, has risen rapidly along with the price of crude. A gallon on the spot market in New York was selling for $3.57 as recently as Tuesday, according to the Energy Information Administration. That is up about 78 percent from this time last year.

At the same time, carriers are cutting back on flights to reduce costs and maintain their pricing power as the economy slows. Even so, analysts expect many large carriers to post large losses this year.

"I would say to my CEOs: fasten your seat belts, tougher times are coming," Giovanni Bisignani, director general and chief executive of the International Air Transport Association trade group, said in an interview.

  Add comment

Name:
E-Mail:
Comment:
Enter code: